In 2004 I started this personal development business with only $9 cash even though I could have spent much more on it.  No fancy logo, no snazzy web design, no business cards or stationary.  I paid to register the domain name, and that was it.  That’s as much as I was willing to spend before I started generating a positive cashflow.  All other business expenditures came out of that cashflow.

Your business should put cash into your pocket, so before you “invest” money into it, be clear on how you’re going to pull that cash back out again.

Obviously some businesses require lots of cash to start, but in the age of the Internet business, you can very easily start a lucrative business for pocket change.

3.  Spending too little money.

It’s also a mistake to be too stingy with your cash.  Don’t let frugality get in the way of efficiency.  Take advantage of skilled contractors who can do certain tasks more efficiently than you can.  Buy decent equipment when it’s clear you’ll get your money’s worth.  You don’t have to overspend on fancy furniture, but get functional furniture that helps you be more productive.  Don’t use an antiquated computer with outdated software that slows you down if you can afford something better.

It takes time to develop the wisdom to know when you’re being too tight or too loose with your cash, so if you’re just starting out, get a second opinion.  Often the very thought of getting a second opinion makes the correct choice clear.  If you can’t justify the expenditure to someone you respect, it’s probably a mistake.  On the other hand, there are situations where it’s hard to justify not spending the cash.

4.  Putting on a fake front.

Many one-person businesses refer to themselves as “we.”  That’s something a lot of new entrepreneurs do, but it isn’t necessary.  There’s nothing wrong with a one-person business, especially today.  My games business has mostly been a we over the years, but my personal development business is still an I.  My wife’s VegFamily Magazine business is a we, since she has a staff working for her, but her web consulting business is an I.  It’s perfectly OK to refer to your business as an I when you’re the only one working in it.  Pretending that you’re a we when you’re really an I is a bit silly.  It’s not going to gain you any respect in a way that matters.  Promoting yourself as an I may even be an advantage today, since people will know the buck stops with you, and if you make a promise, you’re the one who will carry it out.  Promises from a we sometimes aren’t worth very much.

If you’re a newly self-employed person, don’t pretend you’re anything else.  Price your products and services fairly for your level of skills and talents.  Some newly self-employed people think they must become actors.  The business they promote to the world is pure fantasy.  Trying to fool your customers in this manner will only backfire.  If you’re so desperate for business that you need to lie, you shouldn’t be starting your own business.  If you can’t provide real value and charge fairly for it, don’t play the game of business.  Develop your skills a bit more first.liuxuepaper.com